Collection Strategies & Methods Flashcards

Which negotiation technique involves a collector starting with a high demand to leave room for concessions toward the actual target settlement?

Answer: Anchoring

Anchoring sets the initial reference point high so that any concession still moves the debtor toward the collector's actual goal.

When a debtor claims to have already paid an account, the collector's best immediate action is to:

Answer: Place the account on hold and request documentation from both parties

Placing the account on hold while gathering documentation prevents potential FDCPA violations from continuing to collect on a possibly paid debt.

In the context of collection, 'right-party contact' (RPC) most directly impacts which performance metric?

Answer: Promises-to-pay rate and dollars collected

Right-party contact is the gateway to all productive collection activity — without reaching the debtor, no promises-to-pay or payments can be obtained.

A debtor makes a verbal promise to pay but does not follow through. Which strategy should the collector use on the next contact?

Answer: Reference the prior commitment and explore the reason for non-payment

Referencing the prior promise creates accountability and opens a dialogue to understand and overcome the barrier that prevented payment.

Under the FDCPA, which of the following constitutes a prohibited 'false representation' in collecting a debt?

Answer: Claiming the collector is an attorney when they are not

FDCPA §807(3) expressly prohibits falsely representing that the collector is an attorney or that a communication is from an attorney.

Which collection method involves selling accounts to a third-party buyer who then owns the debt outright and collects on its own behalf?

Answer: Debt purchasing / debt buying

Debt purchasing transfers ownership of the account to the buyer for a lump-sum price, and the buyer assumes all collection rights and risks.

What is the recommended approach when a debtor invokes their cease-communication right under the FDCPA?

Answer: Stop all communication except to notify about specific intended actions (e.g., legal suit)

FDCPA §805(c) allows only limited communications after a cease-and-desist, specifically to notify the debtor of termination of efforts or legal action.